Nancy Pelosi is best known for her political chops. After all, Pelosi served as speaker of the House for eight years and was minority leader for another eight years.
She's been a fixture of American politics for more than a generation, serving in Congress since 1987, and she was the first female speaker in U.S. history.
However, Pelosi and her husband Paul have also had a lot of success on the stock market, and they now have a net worth of roughly $250 million. Thanks to the STOCK Act, which requires members of Congress to report their stock trades, it's known what stocks the Pelosis have in their portfolio, and a number of them have been big winners.
Let's take a look at two top stocks the Pelosis own that look like smart buys this month.
Image source: Getty Images.
1. Nvidia
Paul Pelosi opened up a large long position in Nvidia (NVDA +4.39%) on Nov. 22, 2023, spending between $1 million and $5 million and purchasing 50 deep-in-the-money call options, equal to 5,000 shares, on the hot artificial intelligence (AI) stock at a pre-split strike price of $120 with an expiration date of Dec. 12, 2024.
Nvidia stock has more than doubled since then, so those options have paid off for the Pelosis, but it's not too late to buy the high-flying chip stock.
While Nvidia has surged in recent weeks thanks in part to its 10-for-1 stock split that is scheduled to go into effect after hours on June 7, there are more reasons to own the stock than just the stock split.
NASDAQ: NVDA
Key Data Points
First, despite concerns about competition, Nvidia remains head-and-shoulders above its rivals, including AMD and Intel, both of which recently released their own data-center graphics processing units (GPUs) designed to compete with Nvidia.
However, Nvidia's recent results and guidance indicate that the company continues to grow at a blistering speed as it dominates the market for data-center GPUs. Revenue jumped 262% on a year-over-year basis, and profits jumped even faster than that. While revenue growth will slow on a year-over-year basis as comparisons get more difficult, the company expects sequential growth to continue, and it continues to innovate with its new Blackwell platform and a push into AI PC chips.
Nvidia is executing at the top of its game, and profits are still soaring. Competition might be coming, but Nvidia looks like it can easily outrun it.
2. Microsoft
The other Pelosi stock worth buying in June is Microsoft (MSFT +1.03%), which, like Nvidia, is a top AI stock. Paul Pelosi bought between $500,000 and $1,000,000 in Microsoft stock on June 15, 2023, by exercising 50 call options with a strike price of $180, equal to 5,000 shares.
In the year since then, Microsoft stock has continued to climb, and it remains a must-own stock for the AI era.
The tech giant was early to recognize the potential of generative AI, partnering with OpenAI in 2019, and has since invested around $13 billion in the start-up. As a result, Microsoft has been able to leverage OpenAI's technology for everything from its GitHub code repository to its Azure cloud-infrastructure service, Microsoft Office Suite, and its Bing search engine.
NASDAQ: MSFT
Key Data Points
Microsoft also enjoys a level of diversification that's essentially unmatched within the "Magnificent Seven" group of stocks as it benefits from several profit centers, including software like Office, its cloud business anchored by Azure, its Windows operating systems, which are closely tied to PC sales, and gaming through Xbox and now Activision Blizzard.
Aside from Nvidia, which is building the infrastructure for generative AI, Microsoft is one of the few companies that have converted demand for AI capabilities into significant revenue. For example, 65% of the Fortune 500 is now using its Azure OpenAI service, and nearly 60% of the Fortune 500 is now using Copilot, its generative AI-based assistant.
Microsoft already had one of the widest economic moats in the business world before the generative AI boom, but it looks even stronger now. It's no surprise that the Pelosis own Microsoft. The tech giant deserves a place in almost any portfolio.
